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Beware Health Insurance Plan Changes

Note to Readers: Although this story revolves around changes to particular Medicare health insurance plans, the lesson it offers is universal. During open enrollment, don’t just automatically renew your old plan. Look for changes your insurer is implementing in the coming year in the Annual Notice of Changes and see if a different plan may better suit your needs.


Here’s an example of a nasty change by Arkansas BlueMedicare. Their Premier Choice advantage plan used to provide free diagnostic colonoscopies, but for 2024 they added a $275 copay.

*MOUSE PRINT:

Arkansas BlueMedicare


A very popular Medicare Part D drug plan is Wellcare Value Script (PDP). This is optional coverage for those with original Medicare whether or not you also have a supplement (medigap) plan. (Original Medicare does not cover drugs so many seniors buy a separate drug plan called Part D.)

A reason it is so popular is that it tends to be the cheapest plan in some states. For 2024, for example, in Massachusetts, Maine and perhaps elsewhere, the monthly premium is only 50 cents! In some other states it is zero!

It does have the maximum allowable deductible — $545 — but beneficially it does not apply to tier 1 or 2 drugs. Tier 1 has no copays, and tier 2 is only $5 or $15 for 30 or 90 days, respectively. But there is a big change for tier 3 drugs.

*MOUSE PRINT:

Wellcare Value Script

For 2023, there was a flat $47 or $44 copay for tier 3 drugs. That means whatever the full cost, you only had to pay forty-something dollars.

But, for 2024, that changes to co-insurance. To MrConsumer, “co-insurance” is a dirty word. It is cost-sharing between you and your insurance company. They pay part of a particular bill, and you pay a certain percentage of it. For 2024, you will pay 25-percent of the full cost of drugs in the Wellcare plan for that tier. If it is an expensive drug, you could get soaked. If it is a cheap drug, you could save compared to 2023. Note that some other copays are lower for 2024 on this Wellcare plan.


Now it’s time for you to fess up.

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Health Insurance Survey

When is the last time you thoroughly re-evaluated your choice(s) of health insurance?

The bottom line is EVERY YEAR you really need to check and compare the features and costs of your current plan with what various of next year’s plans offer. This goes for regular insurance plans and any of your Medicare plans — Advantage, Supplement, or Part D (drugs). Remember to also check the drug formulary for changes to what drugs are covered, in which tier they reside, and what any restrictions are.

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NyQuil Honey… Where’s the Honey?

With the cough and cold season approaching, NyQuil Severe Honey is being advertised on radio and TV. Listen for all the references to honey in this commercial.


In just 15 seconds, the word “honey” or a variation of it is used six times. That might give you the impression this cough remedy contains… honey.

No wonder they say it so many times. Honey is a time-honored home remedy for sore throats and coughing according to the Mayo Clinic.

Even looking at the bottles one might believe there was real honey in it because they show a big honey dipper dripping with the sweet stuff, and one version of the bottle (perhaps an older one) says it is made with real honey.

*MOUSE PRINT:

NyQuil bottles

But looking at the ingredients statement, honey is not listed as an active ingredient. And on the inactive ingredients list, all it says is “flavor” – not honey, not honey flavor, not natural honey flavor… just “flavor.”

*MOUSE PRINT:

NyQuil ingredients

So where’s the honey? We asked P&G, the maker of NyQuil. The company did not respond to our questions including how much actual honey, if any, was in the product, and whether they would modify their advertising to not give consumers the false impression that real honey and its medicinal benefits are features of this product?

We have turned over the issue to the National Advertising Division of Better Business Bureau Programs suggesting they open a case about this matter.

Please share your thoughts in the comments.

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Value of Health Insurer’s OTC Benefit Questioned

We received a complaint from Phil S. saying that his Medicare advantage plan’s seemingly generous $240 annual allowance toward the purchase of over-the-counter health products was deceptive because the third-party company he was required to buy them from “grossly inflated their price” on certain items.

He’s referring to Tufts Medicare Preferred, a leading Medicare Advantage brand from Tufts Health Plan. They offer a set of plans for seniors in Massachusetts (and elsewhere) for those who want an all-in-one plan instead of having to deal with Medicare and then a separate supplemental insurer.

One of the extra benefits that some of their policies provide is a $240 annual allowance ($60/quarter) that members can spend toward eligible over-the-counter products like pain relievers, eye drops, vitamins, etc. That seems like a quite generous bonus benefit that Medicare itself does not provide.

In order to take advantage of the free OTC products, rather than allow you to go to your local CVS or Walgreens, Tufts emphasizes use of the OTC provider they have contracted with — Medline — and provides their catalog and price list online to members. Tufts is also now allowing purchases through Walmart.com, but does not provide a list of the covered products there nor a price list, and a $6.99 shipping fee on orders under $35 may scare away some members who do not go to the store for free pickup.

*MOUSE PRINT:

4 Easy Ways to Enjoy Your Benefits [three of which are Medline]

Online through Medline — Go to thpmp.org/order-OTC, log in with your OTC card number and your Tufts Health Plan member ID number, and select the items you want to purchase.

The 2023 Medline catalog for Tufts members provides hundreds of covered items. And that’s where the problem begins when comparing those member prices to what Medline normally charges on its own public website.

*MOUSE PRINT:

Medline Alaway

In this dramatic but atypical example provided by our consumer, these eye drops are 64-percent higher when using the Tufts benefit compared to what Medline charges on their own public website. [After we provided the insurer and Medline with this example, rather than lower the price for Tufts members, it increased the price to $31 on its public website!]

To check the price of more items, we chose 10 from the Medline/Tufts catalog of allowed products and compared them to what Medline charges for those same items on its public website. The Medline/Tufts price was higher most of the time. It should be noted that Tufts members do not directly pay extra for shipping, while the Medline public site charges a flat $7.95 for orders under $50.

*MOUSE PRINT:

Medline chartHigher price noted in red

Our consumer believes that Tufts is deceiving the public as to the actual value of the OTC benefit in that it is worth less than the promised $60 per quarter because of Medline’s inflated prices on many items. When Medline’s higher prices for Tufts’ customers are only a couple of bucks more, however, that is understandable since shipping is included in those prices but is not included on Medline’s public site.

But how do the Medline/Tufts prices compare to real world retail store prices? We compared the shipped prices of a dozen items that were available at the Medline/Tufts site and at Target.com. Target was cheaper on all but one of them.

*MOUSE PRINT:

Medline vs. Target

We asked both Tufts and Medline to explain what is going on here given the expectation that pricing for a large affinity group like Tufts Medicare Preferred members should be lower than what the general public pays. We also inquired if it was fair that Medline charges Tufts members more on many items.

A spokesperson for Tufts responded to some of the issues we raised about Medline’s higher prices, and incorporated an explanation and comment they received from Medline, saying in part:

We aim for Tufts Medicare Preferred members to receive the most favorable pricing possible when using their OTC benefit. While we find it unfortunate that there are small discrepancies in the pricing on Medline’s website from time to time, pricing for our members is set six months before the benefit year and based on available market data. Tufts Medicare Preferred pricing includes direct shipping and access to live customer support for all phone or online orders.

Medline strives to provide fair and reasonable prices for all products offered to health plan members.

It seems to us that Tufts Health Plan has not done the best they can on behalf of their members:

1. They do not solicit competitive bids for the company(s) to manage their OTC program. If they did, they could encourage bidders to compete on the prices they will charge for the OTC products offered to their thousands of members.

2. The OTC program materials online fail to clearly outline the Walmart.com option and fail to list the covered products/prices as they do with Medline. Tufts says such a list does not exist and your order will simply be rejected by Walmart if you guess wrong and an item you choose is not covered. How crazy is that? At a minimum, they could have at least provided members with a direct link to the virtually hidden special Walmart Medicare OTC Network website where a curated list of products is shown, but they didn’t.

It is our hope that this story will prompt Tufts Health Plan to take a critical look at their OTC program with an eye toward making it a better value for their members and easier to use. And there is a ray of hope in that regard in one of the final comments that Tufts sent us:

We are currently evaluating our options for future benefit years, which could include additional or different online retailer options, price matching as well as the ability to purchase from retail locations.